5 Use Cases for a Secure Virtual Data Room

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Virtual data rooms enable improved collaboration and secure document sharing in a controlled setting. They are utilized across a wide range of industries to manage a variety of documents, including financial records, business plans and customer information, among other sensitive information. They offer advanced document management along with enhanced security and conformity to business partners and other stakeholders. Cloud storage platforms such as Dropbox and Google Drive may offer file-sharing and collaboration features, among others, but they lack the specific functionality required to share business data.

M&A due diligence

M&A due-diligence is a common application for VDRs. M&A due-diligence is a typical application for VDR because it requires the review and submission of large volumes documents that may contain confidential or proprietary data. A VDR can help reduce stress and time required to complete M&A diligence by allowing parties access to documents from any location with an Internet connection. Additionally, access to the documents can be terminated in the event that the deal doesn’t close.

Law firms

A secure virtual data room is an effective tool for attorneys to share their files with clients, partners and regulatory organizations. Virtual data rooms enable attorneys to collaborate and work on legal cases from anywhere with an Internet connection streamlining workflows and increasing productivity.

Real estate industry

If a business is planning to purchase or sell real estate, it may need to share documents with many interested parties. This includes potential buyers, investors and regulators. A VDR can be used to organize and share documents and speed the process. It also protects sensitive data from being lost.

Fundraising

Enterprises and startups may need to raise money for new investments, or to expand into new markets. A VDR is the best solution, since it allows for transparency and well-organized system for documentation. A VDR can also help to reduce the risk of fraud through detailed audits.

You should choose a VDR that has a custom branding. This allows you to alter your login page and email templates. You are likely to be able choose your preferred integrations. Consider how a VDR can be secured with features such as two-factor authentication and password protection. Additionally, granular permissions settings remote app wiping and the ability to grant granular permissions are essential. You should also ensure that the VDR has certifications for compliance such as SOC 1 & SOC 2, ISO 27001 and HIPAA. Lastly, make sure your preferred VDR supports redaction, which allows you to black out areas of the document to ensure personally-identifiable information remains private. This is an essential feature for M&A and similar deals.